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Alliance BioEnergy Plus, DBA Blue Biofuels, Reports Q3 2020 Financial Results and Files Form 10 to be Current with its Financial Statements

PALM BEACH GARDENS, FL, Jan. 05, 2021 (GLOBE NEWSWIRE) — Alliance BioEnergy Plus, Inc., DBA Blue Biofuels (PINK: ALLM).

Alliance BioEnergy Plus Inc., DBA Blue Biofuels, (the “Company”) is pleased to report its financial statements through Q3 2020.

For fiscal year 2019, the Company had a net income of $1,005,107, as compared to a net loss of $9,421,143 for fiscal year 2018. The income was entirely due to renegotiated and cancelled debts and liabilities of $2,781,783 as a result of the Chapter 11 Bankruptcy process, offset by $1,836,676 in operating expenses. Operating expenses in 2018 were $6,836,475. The reduction in operating expenses relates to reducing G&A costs by the new management team from $2,389,191 in 2018 to $1,038,814 in 2019, and a loss on impairment of zero in 2019 versus $3,827,316 in 2018.

Through the first three quarters of 2020, the Company had a net loss of $1,857,747, as compared to a net income of $1,415,594 for the first nine months of 2019. The Company’s operating expenses for the first 9 months of 2020 were $1,701,452, as compared to $1,371,923 in 2019. A significant percentage of the 2020 operating expenses comprised out-of-the-money stock options amounting to $847,574 using the Black-Scholes valuation methodology.

Although the third quarter 2020 financial statements indicate that there are $4,123,253 in total liabilities, $2,942,132 of this amount is payable out of future profits or future revenues and is not due until these milestones are achieved. Of the total liabilities, $2,696,502 of that amount is extinguished if the conditions precedent to such payment are not satisfied within 5 years from the Chapter 11 Plan Confirmation date of September 18, 2019. During the Chapter 11 restructuring, management decided that it was better for shareholders to renegotiate some debt by extending it to a future date and providing that it is only payable out of future profits or future revenues, rather than converting the liabilities into equity, which would have resulted in significant dilution to current shareholders. Moreover, since management was able to keep dilution to well under the 50% legal limit, Fresh Start Accounting did not apply. This means that the $35,492,755 in federal net operating loss carryovers (as of December 31, 2019) have been preserved, whereas these loss carryovers would have been lost had there been a greater than 50% change in ownership during Chapter 11. Using the current 21% federal income tax rate and Florida’s 4.46% corporate income tax rate, those tax losses have the potential of saving the Company up to approximately $9 million in future taxes.

The Company borrowed $66,330 in accord with the Paycheck Protection Program of the Small Business Administration. The Company will be applying to have this forgiven in accordance with the law.

As of September 30, 2020, long-term debt that would not be discharged or potentially forgiven and that is not due to related parties is $170,000, $120,000 of which is due out of future revenues.

As of September 30, 2020, current liabilities are $1,057,609, $913,745 of which are due to related parties, primarily deferred wages due to management. Current liabilities not due to related parties are $143,863, consisting of $83,246 in lease payments for the Company’s lab and office space over the next 12 months, and $60,618 in accounts payable, $40,000 of which is due to the Company’s auditors.

As of September 30, 2020, the Company had cash of $101,525. Subsequent to that date, the Company raised $440,000. Additional investors have expressed an interest in investment in the Company once it is again a “reporting company”.

ABOUT OUR CLEAN TECHNOLOGY

CTS technology can convert virtually any plant material – grasses, wood, paper, farm waste, yard waste, forestry products, fruit casings, nut shells, and the cellulosic portion of municipal solid waste — into sugars and subsequently into biofuels, and bioplastics, without the use of enzymes or liquid acids. CTS stands for Cellulose to Sugar. The cellulose is converted into sugar and lignin. The sugar is further converted into bio-ethanol and other biofuels; the lignin may be further converted into bioplastics. CTS has a near zero carbon footprint. CTS is the fully owned and independently developed proprietary and patented technology of Blue Biofuels.

It is important to note that any bio-fuel originating from the CTS process would receive the generous D3 cellulosic Renewable Fuel Credits (“RINs”) from the US Government. The D3 RIN is currently $1.93/gallon of ethanol, which is in addition to the market price of ethanol. This incentive is offered to all domestic cellulosic fuel producers whose fuel is used in the transportation market, up to the 590 million gallon mandate for 2020.

Information in this document may constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks, uncertainties and other factors are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Alliance BioEnergy Plus, Inc. herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Alliance BioEnergy Plus, Inc. disclaims any obligation to update forward looking statements contained in this estimate, except as may be required by law. 

Contact:

Ben Slager, CEO
Ben@Bluebiofuels.com

Anthony Santelli, CFO
Anthony@Bluebiofuels.com

SOURCE: Alliance Bioenergy Plus, Inc. DBA Blue Biofuels www.Bluebiofuels.com

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